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Companies live and die by their stock price, yet for the most parts they don't actively participate in trading their shares within the market. Companies receive money from the securities market only when they first sell a security to the public in the primary market, which commonly referred to as an initial public offering (IPO). The original company that issues the stock does not participate in any profits or losses resulting from these transactions because this company has no vested monetary interest.
What else can I help you with?
Why growth may not be the important objective of the business?
Before growth there are most important objectives for a business, first at all to make profits maximisation, business survival.So to be survived on the market,it will have to lower its prices of the products even though it will have a lower profits.
What were Three advantages that corporations brought to America?
EmploymentLower pricesA share of the profits(OW)
What are the effects of a good economy to business?
Generally, higher sales, lower input costs, and higher profits.
How do consumers benefits from competition among business?
competition leads to lower prices
What methods did ruthless business operatorues ues to eliminate their competition?
Ruthless business people would lower their prices to put their competition out of business. Once their competition was gone, they would raise their prices.
What is a reason that a business would commit fraud?
business X might intentionally misreport higher profits than were actually accrued to maintain the stock price and value of the business. If the actual lower profits had been reported, then the stock would almost surely go down
What was one result of the boom on farm production in the 1870?
Crop prices went down because of the boom in farm production in the 1870s.
Why might price collusion occur in oligopolistic industries?
Price collusion may occur in oligopolistic industries because the suppliers may want to guarantee high profits for each other. If one reduces the prices too much, the other may be forced to also reduce and this may lower profits for one player.
Why may mass marketing be expected to result in higher profits for a business?
Companies that employ the system expect the larger profit to result from (1) expanded volume through lower prices and (2) reduced costs through economies of scale made possible by the increased volume.
International trade is beneficial because it?
Results in lower prices
How would the price elasticity of demand impact the pricing decisions of your business?
The price elasticity of demand measures how sensitive consumers are to changes in price. If demand is elastic (responsive to price changes), a business may need to lower prices to increase sales. If demand is inelastic (not very responsive), the business may be able to raise prices without losing many customers. Understanding price elasticity helps businesses make informed pricing decisions to maximize profits.
Explain why a monopolist must lower its quantity relative to a competitive market to maximize its profits?
A monopolist must lower its quantity relative to a competitive market to maximize its profits because the monopolist already controls and owns the largest share of the market.
